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Tax US move to HK (giving up green card)

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  1. #1

    Tax US move to HK (giving up green card)

    Hi,

    Early research to find answers (or the info of someone I can ask).
    Will move in the middle of the US Tax year, will relocate to HK so will have to give back my Green Card, my wife (US citizen) will move to HK a few month after me. Lets make up some numbers
    1/1-3/31 living in the US making USD 30k
    4/1 flying to HK starting my new job
    7/1 my wife joins me
    a) when should I file to renounce (or what the technical term is) my GC .... or in other words when will I be off the hook / is my income excepted from US taxation. So if I file 4/1 then my 2021 US taxes are based on USD 30k ... what will happen if I file 7/1 will the 3 month HK income US taxable?
    b) I know there is foreign income exception up to app USD 105k but that would still "push" the US earnings from 1/1-3/31 into a higher bracket
    c) now the part that makes it tricky ... as my wife needs health insurance from 4/1-6/30 we will use the ACA health exchange. If you have low/no income you get tax credits etc. that greatly reduce the costs of health insurance. So if I file married single her income is $0 / if I file married we would have $30k tax/base income which would still qualify for the highest rebate/subsidiary.
    d) how do I hang on to my green card as long as possible without paying a high tax/health insurance penalty (as there is always the chance the move doesn't work out)?


  2. #2

  3. #3

    While I am a long time resident and having to file 8845 the Dual 1040 and 1040NR filing is no problem as there won’t be any US sourced income as a non resident.


  4. #4

    Join Date
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    I'm not gonna second guess your decision as its based on a confluence of factors but you are giving up something that is a segue to what many people across the world prize - U.S. citizenship.


  5. #5

    Join Date
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    The decisions you are asking about have significant implications. I strongly urge you to consult a tax professional in the USA as soon as possible. Get professional advice rather than our armchair advice. And in general I have found US tax advice is much more expensive to get here than in the USA.

    Consulting an immigration specialist might also be worthwhile.

    shri likes this.

  6. #6

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    Quote Originally Posted by RMDNC:
    I'm not gonna second guess your decision as its based on a confluence of factors but you are giving up something that is a segue to what many people across the world prize - U.S. citizenship.
    I've never understood this - it is a genuine question. What benefits do you actually get by working abroad and paying local as well as US taxes? Is it as simple as if you are 100% sure you are leaving the US for good then you may as well rescind it or is there more to it than that?

    Echo the advice to spend whatever the cost is on decent tax advice either way.

  7. #7
    Quote Originally Posted by RMDNC:
    I'm not gonna second guess your decision as its based on a confluence of factors but you are giving up something that is a segue to what many people across the world prize - U.S. citizenship.
    I have EU citizenship and won’t pay a huge US taxbill for nothing in return
    shri and mysti like this.

  8. #8

    Join Date
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    echo the tax advisor bit. there's a lot of specific IRS code relating to expatriation you might need to be aware of. if i recall there's ongoing reporting requirements for 10 years.


  9. #9

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    Quote Originally Posted by ByeByeEngland:
    I've never understood this - it is a genuine question. What benefits do you actually get by working abroad and paying local as well as US taxes? Is it as simple as if you are 100% sure you are leaving the US for good then you may as well rescind it or is there more to it than that?

    Echo the advice to spend whatever the cost is on decent tax advice either way.
    You get a credit for local taxes paid. As far as actual benefits, many but principally the security of being American and having the best safe harbor in case of negative events. I suppose Britan could offer the same but in a less powerful way.

  10. #10

    Join Date
    Sep 2010
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    Well not everybody values those things so high, DeletedUser...


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